Question 1

In a business plan, the legal form of organization would be discussed in the

Accepted Answer

A)  financial plan. 
B)  company description. 
C)  executive summary. 
D)  marketing plan.

Question 2

The ___________ type of executive summary is better suited to a business that intends to market a new product or enter a new market.

Accepted Answer

A)  informative 
B)  synopsis 
C)  narrative 
D)  blended

Question 3

The financial plan section of a business plan should include balance sheets and income statements on an annual basis and cash flow statements on a monthly basis, all projected out for 2-3 years.

Accepted Answer

A) True 
 B)False

Question 4

One of the primary functions of a business plan is to serve as a selling document to convince key individuals that the venture has real potential.

Accepted Answer

A) True 
 B)False

Question 5

In a business plan, the discussion of the management team should detail

Accepted Answer

A)  the proposed venture's organizational structure. 
B)  profiles of employee needs during the first three years of operation. 
C)  the projected growth of the proposed venture. 
D)  the intended distribution of ownership in the firm.

Question 6

Business plans should be prepared so that they are attractive in appearance and well organized.

Accepted Answer

A) True 
 B)False

Question 7

A business plan

Accepted Answer

A)  is best for telling insiders about the company. 
B)  is more important than the final outcome. 
C)  is not the business. 
D)  will ensure success.

Question 8

The document that assists an entrepreneur and the management team in focusing on important issues and activities is

Accepted Answer

A)  the organization chart. 
B)  the budget. 
C)  the sales analysis. 
D)  the business plan.

Question 9

The narrative form of an executive summary

Accepted Answer

A)  is more straightforward than the synopsis form. 
B)  allows the author to include hyperbole that builds enthusiasm. 
C)  is a better format for ventures that have one dominant advantage. 
D)  gives each topic relatively equal treatment.

Question 10

Jamie has decided to start a franchise.  Typically, the business type would require a ______ revenue model.

Accepted Answer

A)  volume 
B)  subscription 
C)  advertising 
D)  licensing

Question 11

Janice is opening a golf shop and is trying to identify how the company would gain revenue.  What type of revenue stream could Janice's Golf Shop have?

Accepted Answer

The answer of Janice is opening a golf shop and...

Question 12

A business model

Accepted Answer

A)  is only important for startups with a large amount of uncertainty. 
B)  is intended to provide evidence on whether a concept is viable, not if it can be profitable. 
C)  is made up of a revenue model, a cost structure, and key resource requirements. 
D)  forces the entrepreneur to be more disciplined about financial projections.

Question 13

Ideally, investors like a business plan that shows evidence of

Accepted Answer

A)  a management staff that will minimize overhead. 
B)  a well-balanced managerial team. 
C)  an entrepreneur who has studied management. 
D)  an entrepreneur who will spend more time managing than selling.

Question 14

The sources and uses table is a part of the ___________ of the business plan

Accepted Answer

A)  critical risks section 
B)  offering section 
C)  exit strategy 
D)  financial plan

Question 15

In Guy Kawasaki's 10/20/30 rule for pitches, the numbers stand for:

Accepted Answer

A)  number of attendees/slides/minutes 
B)  number of selling points/slides/font point size 
C)  number of slides/minutes/font point size 
D)  number of pictures/slides/minutes

Question 16

List and briefly discuss suggestions for avoiding costly mistakes when hiring a business plan consultant.

Accepted Answer

The answer of List and briefly discuss suggestions for avoiding...

Question 17

A business model's key resource requirements include only hard assets, such as equipment and buildings, not personnel and contacts.

Accepted Answer

A) True 
 B)False

Question 18

Nelson is writing about how he will attract and retain customers, how he will price his product, and how and where he will offer it for sale.  Nelson is working on the __________ section of his business plan.

Accepted Answer

A)  customer service 
B)  product/service plan 
C)  marketing plan 
D)  development plan

Question 19

The short plan would have the least amount of information about

Accepted Answer

A)  pricing. 
B)  supporting documentation. 
C)  competition. 
D)  distribution channels.

Question 20

Business planning

Accepted Answer

A)  is an ongoing process. 
B)  is an exacting science. 
C)  equals business success. 
D)  will prevent unexpected events.

Exam 6: The Business Plan Visualizing the Dream

In a business plan, the legal form of organization would be discussed in the

The ___________ type of executive summary is better suited to a business that intends to market a new product or enter a new market.

The financial plan section of a business plan should include balance sheets and income statements on an annual basis and cash flow statements on a monthly basis, all projected out for 2-3 years.

One of the primary functions of a business plan is to serve as a selling document to convince key individuals that the venture has real potential.

In a business plan, the discussion of the management team should detail

Business plans should be prepared so that they are attractive in appearance and well organized.

A business plan

The document that assists an entrepreneur and the management team in focusing on important issues and activities is

The narrative form of an executive summary

Jamie has decided to start a franchise. Typically, the business type would require a ______ revenue model.

Janice is opening a golf shop and is trying to identify how the company would gain revenue. What type of revenue stream could Janice's Golf Shop have?

A business model

Ideally, investors like a business plan that shows evidence of

The sources and uses table is a part of the ___________ of the business plan

In Guy Kawasaki's 10/20/30 rule for pitches, the numbers stand for:

List and briefly discuss suggestions for avoiding costly mistakes when hiring a business plan consultant.

A business model's key resource requirements include only hard assets, such as equipment and buildings, not personnel and contacts.

Nelson is writing about how he will attract and retain customers, how he will price his product, and how and where he will offer it for sale. Nelson is working on the __________ section of his business plan.

The short plan would have the least amount of information about

Business planning